AmBank initiates fresh statutory demand against Falcon Energy

AmBank initiates fresh statutory demand against Falcon Energy
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KUALA LUMPUR (July 15): AmBank (M) Bhd, via its Labuan offshore branch, has initiated a fresh statutory demand against Singapore-listed Falcon Energy Group Ltd to seek from the latter a loan repayment sum of US$24.28 million (about RM101.88 million).

Falcon Energy chairman and chief executive officer Tan Pong Tyea said in a filing today with the Singapore Exchange that the oil and gas support services provider had received the statutory demand dated yesterday (July 14) from the solicitors of AmBank’s Labuan offshore branch.

"The statutory demand demands, inter alia, payment of a sum of US$24.28 million, being the alleged amount outstanding as at July 13, 2021 under various term loans and revolving credit facilities, including interest and late payment interests. 

"The company is seeking legal advice with respect to the statutory demand. Further announcements will be made by the company and the board via SGXNET as and when there are material developments in compliance with the listing rules of the Singapore Exchange Securities Trading Ltd,” Tan said.

According to him, Falcon Energy remains committed to the company’s restructuring and will continue to engage in discussions with its principal lenders and any other key stakeholders in relation to the restructuring. 

However, there is no assurance or reasonable certainty that any discussions or any restructuring options will materialise or be successfully concluded, he said. 

"Shareholders and investors are advised to exercise caution when dealing in the shares of the company,” Tan said.

AmBank is an operating unit under Bursa Malaysia-listed AMMB Holdings Bhd.

At Bursa’s 12:30pm break today, AMMB's share price settled unchanged at RM2.86 for a market value of about RM9.47 billion based on the group’s 3.31 billion issued shares.

Chong Jin Hun